Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2021 | Jul. 30, 2021 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jun. 30, 2021 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q2 | |
Trading Symbol | NL | |
Title of 12(b) Security | Common stock | |
Security Exchange Name | NYSE | |
Entity Registrant Name | NL INDUSTRIES, INC. | |
Entity Central Index Key | 0000072162 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 48,802,734 | |
Entity File Number | 1-640 | |
Entity Incorporation, State or Country Code | NJ | |
Entity Tax Identification Number | 13-5267260 | |
Entity Address, Address Line One | 5430 LBJ Freeway, Suite 1700 | |
Entity Address, City or Town | Dallas | |
Entity Address, State or Province | TX | |
Entity Address, Postal Zip Code | 75240-2620 | |
City Area Code | (972) | |
Local Phone Number | 233-1700 | |
Document Quarterly Report | true | |
Document Transition Report | false |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Current assets: | ||
Cash and cash equivalents | $ 145,273 | $ 137,039 |
Restricted cash and cash equivalents | 2,734 | 2,695 |
Accounts and other receivables, net | 16,672 | 11,142 |
Receivables from affiliates | 313 | |
Inventories, net | 19,948 | 18,337 |
Prepaid expenses and other | 1,998 | 1,638 |
Total current assets | 186,625 | 171,164 |
Other assets: | ||
Restricted cash and cash equivalents | 25,502 | 25,538 |
Note receivable from affiliate | 26,000 | 29,500 |
Marketable securities | 29,141 | 18,206 |
Investment in Kronos Worldwide, Inc. | 246,853 | 242,374 |
Goodwill | 27,156 | 27,156 |
Other assets, net | 5,361 | 5,262 |
Total other assets | 360,013 | 348,036 |
Property and equipment: | ||
Land | 4,940 | 4,940 |
Buildings | 23,146 | 23,146 |
Equipment | 69,317 | 68,227 |
Construction in progress | 1,246 | 1,010 |
Property and equipment, gross | 98,649 | 97,323 |
Less accumulated depreciation | 69,940 | 68,373 |
Net property and equipment | 28,709 | 28,950 |
Total assets | 575,347 | 548,150 |
Current liabilities: | ||
Accounts payable | 3,754 | 2,647 |
Accrued litigation settlement | 11,943 | 11,830 |
Accrued and other current liabilities | 8,845 | 10,253 |
Accrued environmental remediation and related costs | 2,257 | 2,027 |
Payables to affiliates | 739 | 725 |
Income taxes | 25 | |
Total current liabilities | 27,538 | 27,507 |
Noncurrent liabilities: | ||
Long-term debt from affiliate | 500 | 500 |
Accrued environmental remediation and related costs | 90,654 | 91,389 |
Long-term litigation settlement | 49,873 | 49,403 |
Deferred income taxes | 39,045 | 33,830 |
Accrued pension costs | 5,525 | 6,392 |
Other | 3,637 | 3,780 |
Total noncurrent liabilities | 189,234 | 185,294 |
NL stockholders' equity: | ||
Common stock | 6,100 | 6,098 |
Additional paid-in capital | 300,309 | 299,093 |
Retained earnings | 277,974 | 257,875 |
Accumulated other comprehensive loss | (248,082) | (251,189) |
Total NL stockholders' equity | 336,301 | 311,877 |
Noncontrolling interest in subsidiary | 22,274 | 23,472 |
Total equity | 358,575 | 335,349 |
Total liabilities and equity | 575,347 | 548,150 |
Commitments and contingencies (Note 14) |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF INCOME - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Income Statement [Abstract] | ||||
Net sales | $ 36,253 | $ 23,800 | $ 72,177 | $ 56,111 |
Cost of sales | 24,947 | 16,434 | 49,836 | 38,314 |
Gross margin | 11,306 | 7,366 | 22,341 | 17,797 |
Selling, general and administrative expense | 5,548 | 4,997 | 10,766 | 10,408 |
Other operating income (expense): | ||||
Insurance recoveries | 7 | 86 | 32 | 108 |
Corporate expense | (2,878) | (2,441) | (4,748) | (4,949) |
Income from operations | 2,887 | 14 | 6,859 | 2,548 |
Equity in earnings of Kronos Worldwide, Inc. | 7,816 | 5,651 | 13,784 | 13,858 |
Other income (expense): | ||||
Interest and dividend income | 423 | 501 | 863 | 1,632 |
Marketable equity securities | 4,575 | (2,252) | 10,935 | (14,325) |
Other components of net periodic pension and OPEB cost | (196) | (208) | (267) | (416) |
Interest expense | (299) | (350) | (597) | (702) |
Income before income taxes | 15,206 | 3,356 | 31,577 | 2,595 |
Income tax expense (benefit) | 1,901 | (1,516) | 4,406 | (4,779) |
Net income | 13,305 | 4,872 | 27,171 | 7,374 |
Noncontrolling interest in net income of subsidiary | 608 | 283 | 1,217 | 875 |
Net income attributable to NL stockholders | $ 12,697 | $ 4,589 | $ 25,954 | $ 6,499 |
Amounts attributable to NL stockholders: | ||||
Basic and diluted net income per share | $ 0.26 | $ 0.09 | $ 0.53 | $ 0.13 |
Weighted average shares used in the calculation of net income per share | 48,795 | 48,771 | 48,792 | 48,763 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Statement Of Income And Comprehensive Income [Abstract] | ||||
Net income | $ 13,305 | $ 4,872 | $ 27,171 | $ 7,374 |
Other comprehensive income (loss), net of tax: | ||||
Currency translation | 402 | 4,364 | 947 | (5,754) |
Defined benefit pension plans | 1,144 | 1,031 | 2,295 | 2,074 |
Other postretirement benefit plans | (64) | (71) | (135) | (151) |
Total other comprehensive income (loss), net | 1,482 | 5,324 | 3,107 | (3,831) |
Comprehensive income | 14,787 | 10,196 | 30,278 | 3,543 |
Comprehensive income attributable to noncontrolling interest | 608 | 283 | 1,217 | 875 |
Comprehensive income attributable to NL stockholders | $ 14,179 | $ 9,913 | $ 29,061 | $ 2,668 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF EQUITY - USD ($) $ in Thousands | Total | Common stock | Additional paid-in capital | Retained earnings | Accumulated other comprehensive income (loss) | Noncontrolling interest in subsidiary |
Beginning Balance at Dec. 31, 2019 | $ 327,213 | $ 6,094 | $ 299,102 | $ 251,000 | $ (251,690) | $ 22,707 |
Net income | 7,374 | 6,499 | 875 | |||
Other comprehensive income, net of tax | (3,831) | (3,831) | ||||
Issuance of NL common stock | 100 | 4 | 96 | |||
Dividends paid | (3,902) | (3,902) | ||||
Dividends paid to noncontrolling interest | (338) | (338) | ||||
Other, net | (87) | (105) | 18 | |||
Ending Balance at Jun. 30, 2020 | 326,529 | 6,098 | 299,093 | 253,597 | (255,521) | 23,262 |
Beginning Balance at Mar. 31, 2020 | 318,205 | 6,094 | 298,865 | 250,960 | (260,845) | 23,131 |
Net income | 4,872 | 4,589 | 283 | |||
Other comprehensive income, net of tax | 5,324 | 5,324 | ||||
Issuance of NL common stock | 100 | 4 | 96 | |||
Dividends paid | (1,952) | (1,952) | ||||
Dividends paid to noncontrolling interest | (170) | (170) | ||||
Other, net | 150 | 132 | 18 | |||
Ending Balance at Jun. 30, 2020 | 326,529 | 6,098 | 299,093 | 253,597 | (255,521) | 23,262 |
Beginning Balance at Dec. 31, 2020 | 335,349 | 6,098 | 299,093 | 257,875 | (251,189) | 23,472 |
Net income | 27,171 | 25,954 | 1,217 | |||
Other comprehensive income, net of tax | 3,107 | 3,107 | ||||
Issuance of NL common stock | 101 | 2 | 99 | |||
Dividends paid | (5,855) | (5,855) | ||||
Dividends paid to noncontrolling interest | (669) | (669) | ||||
Other, net | (629) | 1,117 | (1,746) | |||
Ending Balance at Jun. 30, 2021 | 358,575 | 6,100 | 300,309 | 277,974 | (248,082) | 22,274 |
Beginning Balance at Mar. 31, 2021 | 346,819 | 6,098 | 300,097 | 268,205 | (249,564) | 21,983 |
Net income | 13,305 | 12,697 | 608 | |||
Other comprehensive income, net of tax | 1,482 | 1,482 | ||||
Issuance of NL common stock | 101 | 2 | 99 | |||
Dividends paid | (2,928) | (2,928) | ||||
Dividends paid to noncontrolling interest | (330) | (330) | ||||
Equity transactions with noncontrollinginterest, net and other | 126 | 113 | 13 | |||
Ending Balance at Jun. 30, 2021 | $ 358,575 | $ 6,100 | $ 300,309 | $ 277,974 | $ (248,082) | $ 22,274 |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF EQUITY (Parenthetical) - $ / shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Statement Of Stockholders Equity [Abstract] | ||||
Dividends paid per share | $ 6 | $ 4 | $ 0.12 | $ 8 |
CONDENSED CONSOLIDATED STATEM_5
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Cash flows from operating activities: | ||
Net income | $ 27,171 | $ 7,374 |
Depreciation and amortization | 1,900 | 1,912 |
Deferred income taxes | 4,359 | (4,805) |
Equity in earnings of Kronos Worldwide, Inc. | (13,784) | (13,858) |
Dividends received from Kronos Worldwide, Inc. | 12,678 | 12,678 |
Marketable equity securities | (10,935) | 14,325 |
Noncash interest expense | 584 | 686 |
Benefit plan expense greater (less) than cash funding | (191) | 202 |
Other, net | 26 | 42 |
Change in assets and liabilities: | ||
Accounts and other receivables, net | (5,559) | 496 |
Inventories, net | (1,691) | (3,555) |
Prepaid expenses and other | (355) | 358 |
Accounts payable and accrued liabilities | (366) | (3,592) |
Income taxes | (1) | 27 |
Accounts with affiliates | 327 | 530 |
Accrued environmental remediation and related costs | (506) | (675) |
Other noncurrent assets and liabilities, net | (43) | (33) |
Net cash provided by operating activities | 13,614 | 12,112 |
Cash flows from investing activities: | ||
Capital expenditures | (1,598) | (861) |
Note receivable from affiliate: | ||
Collections | 22,200 | 20,628 |
Loans | (18,700) | (23,028) |
Net cash provided by (used in) investing activities | 1,902 | (3,261) |
Cash flows from financing activities: | ||
Dividends paid | (5,855) | (3,902) |
Subsidiary treasury stock acquired | (755) | |
Distributions to noncontrolling interests in subsidiary | (669) | (338) |
Net cash used in financing activities | (7,279) | (4,240) |
Cash and cash equivalents and restricted cash and cash equivalents - net change from: | ||
Operating, investing and financing activities | 8,237 | 4,611 |
Balance at beginning of period | 165,272 | 157,870 |
Balance at end of period | 173,509 | 162,481 |
Supplemental disclosures - cash paid (received) for: | ||
Interest | 13 | 14 |
Income taxes, net | $ 34 | $ (9) |
Organization and Basis of Prese
Organization and Basis of Presentation | 6 Months Ended |
Jun. 30, 2021 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Organization and basis of presentation | Note 1 – Organization and basis of presentation: Organization – At June 30, 2021, Valhi, Inc. (NYSE: VHI) held approximately 83% of our outstanding common stock and a wholly-owned subsidiary of Contran Corporation held approximately 92% of Valhi’s outstanding common stock. A majority of Contran's outstanding voting stock is held directly by Lisa K. Simmons and various family trusts established for the benefit of Ms. Simmons, Thomas C. Connelly (the husband of Ms. Simmons’ late sister) and their children and for which Ms. Simmons or Mr. Connelly, as applicable, serve as trustee (collectively, the “Other Trusts”). With respect to the Other Trusts for which Mr. Connelly serves as trustee, he is required to vote the shares of Contran voting stock held by such trusts in the same manner as Ms. Simmons. Such voting rights of Ms. Simmons last through April 22, 2030 and are personal to Ms. Simmons . The remainder of Contran’s outstanding voting stock is held by another trust (the “Family Trust”), which was established for the benefit of Ms. Simmons and her late sister and their children and for which a third-party financial institution serves as trustee. Consequently, at June 30, 2021 Ms. Simmons and the Family Trust may be deemed to control Contran, and therefore may be deemed to indirectly control the wholly-owned subsidiary of Contran, Valhi and us. Basis of presentation – Consolidated in this Quarterly Report are the results of our majority-owned subsidiary, CompX International Inc. We also own approximately 30% of Kronos Worldwide, Inc. (Kronos). CompX (NYSE American: CIX) and Kronos (NYSE: KRO) each file periodic reports with the Securities and Exchange Commission (SEC). The unaudited Condensed Consolidated Financial Statements contained in this Quarterly Report have been prepared on the same basis as the audited Consolidated Financial Statements in our Annual Report on Form 10-K for the year ended December 31, 2020 that we filed with the SEC on March 10, 2021 (the “2020 Annual Report”). In our opinion, we have made all necessary adjustments (which include only normal recurring adjustments) in order to state fairly, in all material respects, our consolidated financial position, results of operations and cash flows as of the dates and for the periods presented. We have condensed the Consolidated Balance Sheet at December 31, 2020 contained in this Quarterly Report as compared to our audited Consolidated Financial Statements at that date, and we have omitted certain information and footnote disclosures (including those related to the Consolidated Balance Sheet at December 31, 2020) normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America (GAAP). Our results of operations for the interim periods ended June 30, 2021 may not be indicative of our operating results for the full year. The Condensed Consolidated Financial Statements contained in this Quarterly Report should be read in conjunction with our 2020 Consolidated Financial Statements contained in our 2020 Annual Report. Unless otherwise indicated, references in this report to “NL,” “we,” “us” or “our” refer to NL Industries, Inc. and its subsidiaries and affiliate, Kronos, taken as a whole. |
Accounts and Other Receivables,
Accounts and Other Receivables, Net | 6 Months Ended |
Jun. 30, 2021 | |
Receivables [Abstract] | |
Accounts and other receivables, net | Note 2 – December 31, June 30, 2020 2021 (In thousands) Trade receivables - CompX $ 10,801 $ 16,712 Other receivables 393 15 Accrued insurance recoveries 18 15 Allowance for doubtful accounts (70 ) (70 ) Total $ 11,142 $ 16,672 |
Inventories, Net
Inventories, Net | 6 Months Ended |
Jun. 30, 2021 | |
Inventory Disclosure [Abstract] | |
Inventories, net | Note 3 – Inventories, net: December 31, June 30, 2020 2021 (In thousands) Raw materials $ 3,220 $ 4,410 Work in process 11,668 12,404 Finished products 3,449 3,134 Total $ 18,337 $ 19,948 |
Marketable Securities
Marketable Securities | 6 Months Ended |
Jun. 30, 2021 | |
Investments Debt And Equity Securities [Abstract] | |
Marketable securities | Note 4 – Our marketable securities consist of investments in the publicly-traded shares of our immediate parent company Valhi, Inc. Our shares of Valhi common stock are accounted for as available-for-sale securities, which are carried at fair value using quoted market prices in active markets and represent a Level 1 input within the fair value hierarchy. Any unrealized gains or losses on the securities are recognized in Marketable equity securities on our Condensed Consolidated Statements of Income. Fair value measurement level Market value Cost basis Unrealized gain (loss) (In thousands) December 31, 2020 Valhi common stock 1 $ 18,206 $ 24,347 $ (6,141 ) June 30, 2021 Valhi common stock 1 $ 29,141 $ 24,347 $ 4,794 At December 31, 2020 and June 30, 2021, we held approximately 1.2 million shares of common stock of our immediate parent company, Valhi, Inc. At December 31, 2020 and June 30, 2021, the quoted per share market price of Valhi common stock was $15.20 and $24.33, respectively. The Valhi common stock we own is subject to restrictions on resale pursuant to certain provisions of the SEC Rule 144. In addition, as a majority-owned subsidiary of Valhi, we cannot vote our shares of Valhi common stock under Delaware General Corporation Law, but we receive dividends from Valhi on these shares, when declared and paid. |
Investment in Kronos Worldwide,
Investment in Kronos Worldwide, Inc. | 6 Months Ended |
Jun. 30, 2021 | |
Equity Method Investments And Joint Ventures [Abstract] | |
Investment in Kronos Worldwide, Inc. | Note 5 – Investment in Kronos Worldwide, Inc.: At December 31, 2020 and June 30, 2021, we owned approximately 35.2 million shares of Kronos common stock. At June 30, 2021, the quoted market price of Kronos’ common stock was $14.32 per share, or an aggregate market value of $504.3 million. At December 31, 2020, the quoted market price was $14.91 per share, or an aggregate market value of $525.1 million. The change in the carrying value of our investment in Kronos during the first six months of 2021 is summarized below. Amount (In millions) Balance at the beginning of the period $ 242.4 Equity in earnings of Kronos 13.8 Dividends received from Kronos (12.7 ) Equity in Kronos' other comprehensive income: Currency translation 1.3 Defined benefit pension plans 2.1 Balance at the end of the period $ 246.9 Selected financial information of Kronos is summarized below: December 31, June 30, 2020 2021 (In millions) Current assets $ 1,218.3 $ 1,159.1 Property and equipment, net 524.6 509.5 Investment in TiO 2 103.3 103.5 Other noncurrent assets 190.5 184.8 Total assets $ 2,036.7 $ 1,956.9 Current liabilities $ 260.2 $ 201.8 Long-term debt 486.7 472.5 Accrued pension costs 372.6 359.0 Other noncurrent liabilities 120.7 112.4 Stockholders' equity 796.5 811.2 Total liabilities and stockholders' equity $ 2,036.7 $ 1,956.9 Three months ended Six months ended June 30, June 30, 2020 2021 2020 2021 (In millions) Net sales $ 386.0 $ 478.6 $ 807.0 $ 943.6 Cost of sales 290.2 369.6 623.1 738.9 Income from operations 33.0 43.8 76.5 77.8 Income tax expense 5.1 9.2 13.5 15.2 Net income 18.6 25.7 45.6 45.3 |
Other Assets, Net
Other Assets, Net | 6 Months Ended |
Jun. 30, 2021 | |
Deferred Costs Capitalized Prepaid And Other Assets Disclosure [Abstract] | |
Other assets, net | Note 6 – December 31, June 30, 2020 2021 (In thousands) Pension asset $ 3,881 $ 3,976 Other 1,381 1,385 Total $ 5,262 $ 5,361 |
Accrued and Other Current Liabi
Accrued and Other Current Liabilities | 6 Months Ended |
Jun. 30, 2021 | |
Payables And Accruals [Abstract] | |
Accrued and other current liabilities | Note 7 – December 31, June 30, 2020 2021 (In thousands) Employee benefits $ 9,000 $ 7,385 Other 1,253 1,460 Total $ 10,253 $ 8,845 |
Long-Term Debt
Long-Term Debt | 6 Months Ended |
Jun. 30, 2021 | |
Debt Disclosure [Abstract] | |
Long-term debt | Note 8 – During the first six months of 2021, our wholly-owned subsidiary, NLKW Holding, LLC had no borrowings or repayments under its $50 million secured revolving credit facility with Valhi. At June 30, 2021, $.5 million was outstanding and $49.5 million was available for future borrowing under this facility. Outstanding borrowings bear interest at the prime rate plus 1.875% per annum, and the average interest rate for the six months ended June 30, 2021 was 5.13%. The interest rate under this facility as of June 30, 2021 was 5.13%. We are in compliance with all covenants at June 30, 2021. |
Other Noncurrent Liabilities
Other Noncurrent Liabilities | 6 Months Ended |
Jun. 30, 2021 | |
Other Liabilities Disclosure [Abstract] | |
Other noncurrent liabilities | Note 9 – December 31, June 30, 2020 2021 (In thousands) Reserve for uncertain tax positions $ 1,717 $ 1,717 OPEB 985 878 Insurance claims and expenses 653 617 Other 425 425 Total $ 3,780 $ 3,637 |
Revenue Recognition
Revenue Recognition | 6 Months Ended |
Jun. 30, 2021 | |
Revenue From Contract With Customer [Abstract] | |
Revenue Recognition | Note 10 – Revenue recognition: The following table disaggregates our net sales by reporting unit, which are the categories that depict how the nature, amount, timing and uncertainty of revenue and cash flows are affected by economic factors. Three months ended Six months ended June 30, June 30, 2020 2021 2020 2021 (In thousands) Net sales: Security Products $ 18,573 $ 27,587 $ 44,042 $ 53,472 Marine Components 5,227 8,666 12,069 18,705 Total $ 23,800 $ 36,253 $ 56,111 $ 72,177 |
Employee Benefit Plans
Employee Benefit Plans | 6 Months Ended |
Jun. 30, 2021 | |
Compensation And Retirement Disclosure [Abstract] | |
Employee benefit plans | Note 11 – The components of net periodic defined benefit pension cost are presented in the table below. Three months ended Six months ended June 30, June 30, 2020 2021 2020 2021 (In thousands) Interest cost $ 355 $ 279 $ 710 $ 432 Expected return on plan assets (461 ) (398 ) (922 ) (796 ) Recognized actuarial losses 380 376 760 752 Total $ 274 $ 257 $ 548 $ 388 We currently expect our 2021 contributions to our defined benefit pension plans to be approximately $1.2 million. |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2021 | |
Income Tax Disclosure [Abstract] | |
Income taxes | Note 12 – Three months ended June 30, Six months ended June 30, 2020 2021 2020 2021 (In millions) Expected tax expense, at U.S. federal statutory income tax rate of 21% $ .7 $ 3.2 $ .5 $ 6.6 Rate differences on equity in earnings of Kronos, net of dividends (2.2 ) (1.2 ) (5.4 ) (2.2 ) U.S. state income taxes and other, net - (.1 ) .1 - Income tax expense (benefit) $ (1.5 ) $ 1.9 $ (4.8 ) $ 4.4 Comprehensive provision (benefit) for income taxes allocable to: Net income (loss) $ (1.5 ) $ 1.9 $ (4.8 ) $ 4.4 Additional paid-in capital - - (.1 ) - Other comprehensive income (loss): Currency translation 1.2 .2 (1.5 ) .3 Pension plans .3 .3 .6 .6 Total $ - $ 2.4 $ (5.8 ) $ 5.3 In accordance with GAAP, we recognize deferred income taxes on our undistributed equity in earnings (losses) of Kronos. Because we and Kronos are part of the same U.S. federal income tax group, any dividends we receive from Kronos are nontaxable to us. Accordingly, we do not recognize and we are not required to pay income taxes on dividends from Kronos. We received aggregate dividends from Kronos of $12.7 million in each of the first six months of 2020 and 2021. The amounts shown in the above table of our income tax rate reconciliation for rate differences on equity in earnings of Kronos represent the income tax benefit associated with the nontaxable dividends we received from Kronos compared to the amount of deferred income taxes we recognized on our undistributed equity in earnings (losses) of Kronos. Our equity in earnings of Kronos in 2021 is expected to be higher than our equity in earnings of Kronos in 2020. Income tax matters related to Kronos On March 27, 2020, the “Coronavirus Aid, Relief and Economic Security (CARES) Act” was signed into law in response to the COVID-19 pandemic. The CARES Act, among other things, includes modifications to the limitation of business interest for tax years beginning in 2019 and 2020 increasing the business interest limitation from 30% of adjusted taxable income to 50% of adjusted taxable income which increased Kronos’ allowable interest expense deduction for 2019 and 2020. Consequently, in the first quarter of 2020 Kronos recognized a cash tax benefit of $.5 million related to the reversal of the valuation allowance recognized in 2019 for the portion of the disallowed interest expense Kronos did not expect to fully utilize at December 31, 2019. |
Stockholders Equity
Stockholders Equity | 6 Months Ended |
Jun. 30, 2021 | |
Stockholders Equity Note [Abstract] | |
Stockholders Equity | Note 13 – Accumulated other comprehensive loss - Changes in accumulated other comprehensive loss attributable to NL stockholders, including amounts resulting from our investment in Kronos Worldwide (see Note 5), are presented in the table below. Three months ended Six months ended June 30, June 30, 2020 2021 2020 2021 (In thousands) Accumulated other comprehensive loss, net of tax: Currency translation: Balance at beginning of period $ (182,961 ) $ (169,030 ) $ (172,843 ) $ (169,575 ) Other comprehensive income (loss) 4,364 402 (5,754 ) 947 Balance at end of period $ (178,597 ) $ (168,628 ) $ (178,597 ) $ (168,628 ) Defined benefit pension plans: Balance at beginning of period $ (77,214 ) $ (79,553 ) $ (78,257 ) $ (80,704 ) Other comprehensive income - amortization of net losses included in net periodic pension cost 1,031 1,144 2,074 2,295 Balance at end of period $ (76,183 ) $ (78,409 ) $ (76,183 ) $ (78,409 ) OPEB plans: Balance at beginning of period $ (670 ) $ (981 ) $ (590 ) $ (910 ) Other comprehensive loss - amortization of net gains included in net periodic OPEB cost (71 ) (64 ) (151 ) (135 ) Balance at end of period $ (741 ) $ (1,045 ) $ (741 ) $ (1,045 ) Total accumulated other comprehensive loss: Balance at beginning of period $ (260,845 ) $ (249,564 ) $ (251,690 ) $ (251,189 ) Other comprehensive income (loss) 5,324 1,482 (3,831 ) 3,107 Balance at end of period $ (255,521 ) $ (248,082 ) $ (255,521 ) $ (248,082 ) See Note 11 for amounts related to our defined benefit pension plans. Other – During the first quarter of 2021, CompX purchased 50,000 shares of its Class A common stock in a market transaction for approximately $755,000. At June 30, 2021, 627,547 shares were available for purchase under CompX’s prior repurchase authorizations. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2021 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and contingencies | Note 14 – Commitments and contingencies: General We are involved in various environmental, contractual, product liability, patent (or intellectual property), employment and other claims and disputes incidental to our current and former businesses. At least quarterly our management discusses and evaluates the status of any pending litigation or claim to which we are a party or which has been asserted against us. The factors considered in such evaluation include, among other things, the nature of such pending cases and claims, the status of such pending cases and claims, the advice of legal counsel and our experience in similar cases and claims (if any). Based on such evaluation, we make a determination as to whether we believe (i) it is probable a loss has been incurred, and if so if the amount of such loss (or a range of loss) is reasonably estimable, or (ii) it is reasonably possible but not probable a loss has been incurred, and if so, if the amount of such loss (or a range of loss) is reasonably estimable, or (iii) the probability a loss has been incurred is remote. Lead pigment litigation Our former operations included the manufacture of lead pigments for use in paint and lead-based paint. We, other former manufacturers of lead pigments for use in paint and lead-based paint (together, the “former pigment manufacturers”), and the Lead Industries Association (LIA), which discontinued business operations in 2002, have been named as defendants in various legal proceedings seeking damages for personal injury, property damage and governmental expenditures allegedly caused by the use of lead-based paints. Certain of these actions have been filed by or on behalf of states, counties, cities or their public housing authorities and school districts, and certain others have been asserted as class actions. These lawsuits seek recovery under a variety of theories, including public and private nuisance, negligent product design, negligent failure to warn, strict liability, breach of warranty, conspiracy/concert of action, aiding and abetting, enterprise liability, market share or risk contribution liability, intentional tort, fraud and misrepresentation, violations of state consumer protection statutes, supplier negligence and similar claims. The plaintiffs in these actions generally seek to impose on the defendants responsibility for lead paint abatement and health concerns associated with the use of lead-based paints, including damages for personal injury, contribution and/or indemnification for medical expenses, medical monitoring expenses and costs for educational programs. To the extent the plaintiffs seek compensatory or punitive damages in these actions, such damages are generally unspecified. In some cases, the damages are unspecified pursuant to the requirements of applicable state law. A number of cases are inactive or have been dismissed or withdrawn. Most of the remaining cases are in various pre-trial stages. Some are on appeal following dismissal or summary judgment rulings or a trial verdict in favor of either the defendants or the plaintiffs. We believe these actions are without merit, and we intend to continue to deny all allegations of wrongdoing and liability and to defend against all actions vigorously. Other than with respect to the Santa Clara, California public nuisance case discussed below, we do not believe it is probable we have incurred any liability with respect to all of the lead pigment litigation cases to which we are a party, and with respect to all other lead pigment litigation cases to which we are a party, we believe liability to us that may result, if any, in this regard cannot be reasonably estimated, because: • we have never settled any of the market share, intentional tort, fraud, nuisance, supplier negligence, breach of warranty, conspiracy, misrepresentation, aiding and abetting, enterprise liability, or statutory cases (other than the Santa Clara case discussed below), • no final, non-appealable adverse judgments have ever been entered against us, and • we have never ultimately been found liable with respect to any such litigation matters, including over 100 cases over a thirty-year Accordingly, other than with respect to the Santa Clara case discussed below, we have not accrued any amounts for any of the pending lead pigment and lead-based paint litigation cases filed by or on behalf of states, counties, cities or their public housing authorities and school districts, or those asserted as class actions. In addition, we have determined that liability to us which may result, if any, cannot be reasonably estimated at this time because there is no prior history of a loss of this nature on which an estimate could be made and there is no substantive information available upon which an estimate could be based. Under the terms of the County of Santa Clara v. Atlantic Richfield Company, et al. New cases may continue to be filed against us. It is possible we will incur liability in the future with respect to any of the pending or possible litigation in view of the inherent uncertainties involved in court and jury rulings. In the future, if new information regarding such matters becomes available to us (such as a final, non-appealable adverse verdict against us or otherwise ultimately being found liable with respect to such matters), at that time we would consider such information in evaluating any remaining cases then-pending against us as to whether it might then become probable we have incurred liability with respect to these matters, and whether such liability, if any, could become reasonably estimable. The resolution of any of these cases could result in the recognition of a loss contingency accrual that could have a material adverse impact on our net income for the interim or annual period during which such liability is recognized and a material adverse impact on our consolidated financial condition and liquidity. Environmental matters and litigation Our operations are governed by various environmental laws and regulations. Certain of our businesses are and have been engaged in the handling, manufacture or use of substances or compounds that may be considered toxic or hazardous within the meaning of applicable environmental laws and regulations. As with other companies engaged in similar businesses, certain of our past and current operations and products have the potential to cause environmental or other damage. We have implemented and continue to implement various policies and programs in an effort to minimize these risks. Our policy is to maintain compliance with applicable environmental laws and regulations at all of our plants and to strive to improve environmental performance. From time to time, we may be subject to environmental regulatory enforcement under U.S. statutes, the resolution of which typically involves the establishment of compliance programs. It is possible that future developments, such as stricter requirements of environmental laws and enforcement policies, could adversely affect our production, handling, use, storage, transportation, sale or disposal of such substances. We believe all of our facilities are in substantial compliance with applicable environmental laws. Certain properties and facilities used in our former operations, including divested primary and secondary lead smelters and former mining locations, are the subject of civil litigation, administrative proceedings or investigations arising under federal and state environmental laws and common law. Additionally, in connection with past operating practices, we are currently involved as a defendant, potentially responsible party (PRP) or both, pursuant to the Comprehensive Environmental Response, Compensation and Liability Act, as amended by the Superfund Amendments and Reauthorization Act (CERCLA), and similar state laws in various governmental and private actions associated with waste disposal sites, mining locations, and facilities that we or our predecessors, our subsidiaries or their predecessors currently or previously owned, operated or used, certain of which are on the United States Environmental Protection Agency’s (EPA) Superfund National Priorities List or similar state lists. These proceedings seek cleanup costs, damages for personal injury or property damage and/or damages for injury to natural resources. Certain of these proceedings involve claims for substantial amounts. Although we may be jointly and severally liable for these costs, in most cases we are only one of a number of PRPs who may also be jointly and severally liable, and among whom costs may be shared or allocated. In addition, we are occasionally named as a party in a number of personal injury lawsuits filed in various jurisdictions alleging claims related to environmental conditions alleged to have resulted from our operations. Obligations associated with environmental remediation and related matters are difficult to assess and estimate for numerous reasons including the: • complexity and differing interpretations of governmental regulations, • number of PRPs and their ability or willingness to fund such allocation of costs, • financial capabilities of the PRPs and the allocation of costs among them, • solvency of other PRPs, • multiplicity of possible solutions, • number of years of investigatory, remedial and monitoring activity required, • uncertainty over the extent, if any, to which our former operations might have contributed to the conditions allegedly giving rise to such personal injury, property damage, natural resource and related claims, and • number of years between former operations and notice of claims and lack of information and documents about the former operations. In addition, the imposition of more stringent standards or requirements under environmental laws or regulations, new developments or changes regarding site cleanup costs or the allocation of costs among PRPs, solvency of other PRPs, the results of future testing and analysis undertaken with respect to certain sites or a determination that we are potentially responsible for the release of hazardous substances at other sites, could cause our expenditures to exceed our current estimates. It is possible actual costs will exceed accrued amounts or the upper end of the range for sites for which estimates have been made, and it is possible costs will be incurred for sites where no estimates presently can be made. Further, additional environmental and related matters may arise in the future. If we were to incur any future liability, this could have a material adverse effect on our consolidated financial statements, results of operations and liquidity. We record liabilities related to environmental remediation and related matters (including costs associated with damages for personal injury or property damage and/or damages for injury to natural resources) when estimated future expenditures are probable and reasonably estimable. We adjust such accruals as further information becomes available to us or as circumstances change. Unless the amounts and timing of such estimated future expenditures are fixed and reasonably determinable, we generally do not discount estimated future expenditures to their present value due to the uncertainty of the timing of the payout. We recognize recoveries of costs from other parties, if any, as assets when their receipt is deemed probable. We do not know and cannot estimate the exact time frame over which we will make payments for our accrued environmental and related costs. The timing of payments depends upon a number of factors, including but not limited to the timing of the actual remediation process, which in turn depends on factors outside of our control. At each balance sheet date, we estimate the amount of our accrued environmental and related costs which we expect to pay within the next twelve months, and we classify this estimate as a current liability. We classify the remaining accrued environmental costs as a noncurrent liability. Changes in the accrued environmental remediation and related costs during the first six months of 2021 are as follows: Amount (In thousands) Balance at the beginning of the period $ 93,416 Additions charged to expense, net 211 Payments, net (716 ) Balance at the end of the period $ 92,911 Amounts recognized in the Condensed Consolidated Balance Sheet at the end of the period: Current liability $ 2,257 Noncurrent liability 90,654 Balance at the end of the period $ 92,911 On a quarterly basis, we evaluate the potential range of our liability for environmental remediation and related costs at sites where we have been named as a PRP or defendant, including sites for which our wholly-owned environmental management subsidiary, NL Environmental Management Services, Inc. (EMS), has contractually assumed our obligations. At June 30, 2021, we had accrued approximately $93 We believe it is not reasonably possible to estimate the range of costs for certain sites. At June 30, 2021, there were approximately five sites for which we are not currently able to reasonably estimate a range of costs. For these sites, generally the investigation is in the early stages, and we are unable to determine whether or not we actually had any association with the site, the nature of our responsibility, if any, for the contamination at the site, if any, and the extent of contamination at and cost to remediate the site. The timing and availability of information on these sites is dependent on events outside of our control, such as when the party alleging liability provides information to us. At certain of these previously inactive sites, we have received general and special notices of liability from the EPA and/or state agencies alleging that we, sometimes with other PRPs, are liable for past and future costs of remediating environmental contamination allegedly caused by former operations. These notifications may assert that we, along with any other alleged PRPs, are liable for past and/or future clean-up costs. As further information becomes available to us for any of these sites, which would allow us to estimate a range of costs, we would at that time adjust our accruals. Any such adjustment could result in the recognition of an accrual that would have a material effect on our consolidated financial statements, results of operations and liquidity. Insurance coverage claims We are involved in certain legal proceedings with a number of our former insurance carriers regarding the nature and extent of the carriers’ obligations to us under insurance policies with respect to certain lead pigment and asbestos lawsuits. The issue of whether insurance coverage for defense costs or indemnity or both will be found to exist for our lead pigment and asbestos litigation depends upon a variety of factors and we cannot assure you that such insurance coverage will be available. We have agreements with certain of our former insurance carriers pursuant to which the carriers reimburse us for a portion of our future lead pigment litigation defense costs, and one such carrier reimburses us for a portion of our future asbestos litigation defense costs. We are not able to determine how much we will ultimately recover from these carriers for defense costs incurred by us because of certain issues that arise regarding which defense costs qualify for reimbursement. While we continue to seek additional insurance recoveries, we do not know if we will be successful in obtaining reimbursement for either defense costs or indemnity. Accordingly, we recognize insurance recoveries in income only when receipt of the recovery is probable and we are able to reasonably estimate the amount of the recovery. For a complete discussion of certain litigation involving us and certain of our former insurance carriers, refer to our 2020 Annual Report. Other litigation In addition to the litigation described above, we and our affiliates are also involved in various other environmental, contractual, product liability, patent (or intellectual property), employment and other claims and disputes incidental to present and former businesses. In certain cases, we have insurance coverage for these items, although we do not expect additional material insurance coverage for environmental matters. We currently believe the disposition of all of these various other claims and disputes (including asbestos related claims), individually and in the aggregate, should not have a material adverse effect on our consolidated financial position, results of operations or liquidity beyond the accruals already provided. |
Financial Instruments and Fair
Financial Instruments and Fair Value Measurements | 6 Months Ended |
Jun. 30, 2021 | |
Fair Value Disclosures [Abstract] | |
Financial instruments and fair value measurements | Note 15 – Financial instruments and fair value measurements: See Note 4 for information on how we determine fair value of our marketable securities. The following table presents the financial instruments that are not carried at fair value but which require fair value disclosure: December 31, 2020 June 30, 2021 Carrying Fair Carrying Fair amount value amount value (In thousands) Cash, cash equivalents and restricted cash $ 165,272 $ 165,272 $ 173,509 $ 173,509 Due to their near-term maturities, the carrying amounts of accounts receivable and accounts payable are considered equivalent to fair value. |
Organization and Basis of Pre_2
Organization and Basis of Presentation (Policies) | 6 Months Ended |
Jun. 30, 2021 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Organization | Organization – At June 30, 2021, Valhi, Inc. (NYSE: VHI) held approximately 83% of our outstanding common stock and a wholly-owned subsidiary of Contran Corporation held approximately 92% of Valhi’s outstanding common stock. A majority of Contran's outstanding voting stock is held directly by Lisa K. Simmons and various family trusts established for the benefit of Ms. Simmons, Thomas C. Connelly (the husband of Ms. Simmons’ late sister) and their children and for which Ms. Simmons or Mr. Connelly, as applicable, serve as trustee (collectively, the “Other Trusts”). With respect to the Other Trusts for which Mr. Connelly serves as trustee, he is required to vote the shares of Contran voting stock held by such trusts in the same manner as Ms. Simmons. Such voting rights of Ms. Simmons last through April 22, 2030 and are personal to Ms. Simmons . The remainder of Contran’s outstanding voting stock is held by another trust (the “Family Trust”), which was established for the benefit of Ms. Simmons and her late sister and their children and for which a third-party financial institution serves as trustee. Consequently, at June 30, 2021 Ms. Simmons and the Family Trust may be deemed to control Contran, and therefore may be deemed to indirectly control the wholly-owned subsidiary of Contran, Valhi and us. |
Basis of presentation | Basis of presentation – Consolidated in this Quarterly Report are the results of our majority-owned subsidiary, CompX International Inc. We also own approximately 30% of Kronos Worldwide, Inc. (Kronos). CompX (NYSE American: CIX) and Kronos (NYSE: KRO) each file periodic reports with the Securities and Exchange Commission (SEC). The unaudited Condensed Consolidated Financial Statements contained in this Quarterly Report have been prepared on the same basis as the audited Consolidated Financial Statements in our Annual Report on Form 10-K for the year ended December 31, 2020 that we filed with the SEC on March 10, 2021 (the “2020 Annual Report”). In our opinion, we have made all necessary adjustments (which include only normal recurring adjustments) in order to state fairly, in all material respects, our consolidated financial position, results of operations and cash flows as of the dates and for the periods presented. We have condensed the Consolidated Balance Sheet at December 31, 2020 contained in this Quarterly Report as compared to our audited Consolidated Financial Statements at that date, and we have omitted certain information and footnote disclosures (including those related to the Consolidated Balance Sheet at December 31, 2020) normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America (GAAP). Our results of operations for the interim periods ended June 30, 2021 may not be indicative of our operating results for the full year. The Condensed Consolidated Financial Statements contained in this Quarterly Report should be read in conjunction with our 2020 Consolidated Financial Statements contained in our 2020 Annual Report. Unless otherwise indicated, references in this report to “NL,” “we,” “us” or “our” refer to NL Industries, Inc. and its subsidiaries and affiliate, Kronos, taken as a whole. |
Accounts and Other Receivable_2
Accounts and Other Receivables, Net (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Receivables [Abstract] | |
Schedule of Accounts Notes Loans and Financing Receivable | December 31, June 30, 2020 2021 (In thousands) Trade receivables - CompX $ 10,801 $ 16,712 Other receivables 393 15 Accrued insurance recoveries 18 15 Allowance for doubtful accounts (70 ) (70 ) Total $ 11,142 $ 16,672 |
Inventories, Net (Tables)
Inventories, Net (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventories, Net | December 31, June 30, 2020 2021 (In thousands) Raw materials $ 3,220 $ 4,410 Work in process 11,668 12,404 Finished products 3,449 3,134 Total $ 18,337 $ 19,948 |
Marketable Securities (Tables)
Marketable Securities (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Investments Debt And Equity Securities [Abstract] | |
Schedule of Marketable Securities | Fair value measurement level Market value Cost basis Unrealized gain (loss) (In thousands) December 31, 2020 Valhi common stock 1 $ 18,206 $ 24,347 $ (6,141 ) June 30, 2021 Valhi common stock 1 $ 29,141 $ 24,347 $ 4,794 |
Investment in Kronos Worldwid_2
Investment in Kronos Worldwide, Inc. (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Equity Method Investments And Joint Ventures [Abstract] | |
Changes in Carrying Value of Investment | The change in the carrying value of our investment in Kronos during the first six months of 2021 is summarized below. Amount (In millions) Balance at the beginning of the period $ 242.4 Equity in earnings of Kronos 13.8 Dividends received from Kronos (12.7 ) Equity in Kronos' other comprehensive income: Currency translation 1.3 Defined benefit pension plans 2.1 Balance at the end of the period $ 246.9 |
Selected Financial Information of Kronos Balance Sheet | Selected financial information of Kronos is summarized below: December 31, June 30, 2020 2021 (In millions) Current assets $ 1,218.3 $ 1,159.1 Property and equipment, net 524.6 509.5 Investment in TiO 2 103.3 103.5 Other noncurrent assets 190.5 184.8 Total assets $ 2,036.7 $ 1,956.9 Current liabilities $ 260.2 $ 201.8 Long-term debt 486.7 472.5 Accrued pension costs 372.6 359.0 Other noncurrent liabilities 120.7 112.4 Stockholders' equity 796.5 811.2 Total liabilities and stockholders' equity $ 2,036.7 $ 1,956.9 |
Selected Financial Information of Kronos Income Statement | Three months ended Six months ended June 30, June 30, 2020 2021 2020 2021 (In millions) Net sales $ 386.0 $ 478.6 $ 807.0 $ 943.6 Cost of sales 290.2 369.6 623.1 738.9 Income from operations 33.0 43.8 76.5 77.8 Income tax expense 5.1 9.2 13.5 15.2 Net income 18.6 25.7 45.6 45.3 |
Other Assets, Net (Tables)
Other Assets, Net (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Deferred Costs Capitalized Prepaid And Other Assets Disclosure [Abstract] | |
Schedule of Other Assets, Net | December 31, June 30, 2020 2021 (In thousands) Pension asset $ 3,881 $ 3,976 Other 1,381 1,385 Total $ 5,262 $ 5,361 |
Accrued and Other Current Lia_2
Accrued and Other Current Liabilities (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Payables And Accruals [Abstract] | |
Schedule of Accrued and Other Current Liabilities | December 31, June 30, 2020 2021 (In thousands) Employee benefits $ 9,000 $ 7,385 Other 1,253 1,460 Total $ 10,253 $ 8,845 |
Other Noncurrent Liabilities (T
Other Noncurrent Liabilities (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Other Liabilities Disclosure [Abstract] | |
Summary of Other Noncurrent Liabilities | December 31, June 30, 2020 2021 (In thousands) Reserve for uncertain tax positions $ 1,717 $ 1,717 OPEB 985 878 Insurance claims and expenses 653 617 Other 425 425 Total $ 3,780 $ 3,637 |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Revenue From Contract With Customer [Abstract] | |
Schedule of Disaggregates Net Sales By Reporting Unit | The following table disaggregates our net sales by reporting unit, which are the categories that depict how the nature, amount, timing and uncertainty of revenue and cash flows are affected by economic factors. Three months ended Six months ended June 30, June 30, 2020 2021 2020 2021 (In thousands) Net sales: Security Products $ 18,573 $ 27,587 $ 44,042 $ 53,472 Marine Components 5,227 8,666 12,069 18,705 Total $ 23,800 $ 36,253 $ 56,111 $ 72,177 |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Defined Benefit Pension Plans | |
Components of Net Periodic Defined Benefit Cost (Income) | The components of net periodic defined benefit pension cost are presented in the table below. Three months ended Six months ended June 30, June 30, 2020 2021 2020 2021 (In thousands) Interest cost $ 355 $ 279 $ 710 $ 432 Expected return on plan assets (461 ) (398 ) (922 ) (796 ) Recognized actuarial losses 380 376 760 752 Total $ 274 $ 257 $ 548 $ 388 |
Income Taxes (Tables)
Income Taxes (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Income Tax Disclosure [Abstract] | |
Component of Income Taxes | Three months ended June 30, Six months ended June 30, 2020 2021 2020 2021 (In millions) Expected tax expense, at U.S. federal statutory income tax rate of 21% $ .7 $ 3.2 $ .5 $ 6.6 Rate differences on equity in earnings of Kronos, net of dividends (2.2 ) (1.2 ) (5.4 ) (2.2 ) U.S. state income taxes and other, net - (.1 ) .1 - Income tax expense (benefit) $ (1.5 ) $ 1.9 $ (4.8 ) $ 4.4 Comprehensive provision (benefit) for income taxes allocable to: Net income (loss) $ (1.5 ) $ 1.9 $ (4.8 ) $ 4.4 Additional paid-in capital - - (.1 ) - Other comprehensive income (loss): Currency translation 1.2 .2 (1.5 ) .3 Pension plans .3 .3 .6 .6 Total $ - $ 2.4 $ (5.8 ) $ 5.3 |
Stockholders Equity (Tables)
Stockholders Equity (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Stockholders Equity Note [Abstract] | |
Schedule of Changes in Accumulated Other Comprehensive Loss | Accumulated other comprehensive loss - Changes in accumulated other comprehensive loss attributable to NL stockholders, including amounts resulting from our investment in Kronos Worldwide (see Note 5), are presented in the table below. Three months ended Six months ended June 30, June 30, 2020 2021 2020 2021 (In thousands) Accumulated other comprehensive loss, net of tax: Currency translation: Balance at beginning of period $ (182,961 ) $ (169,030 ) $ (172,843 ) $ (169,575 ) Other comprehensive income (loss) 4,364 402 (5,754 ) 947 Balance at end of period $ (178,597 ) $ (168,628 ) $ (178,597 ) $ (168,628 ) Defined benefit pension plans: Balance at beginning of period $ (77,214 ) $ (79,553 ) $ (78,257 ) $ (80,704 ) Other comprehensive income - amortization of net losses included in net periodic pension cost 1,031 1,144 2,074 2,295 Balance at end of period $ (76,183 ) $ (78,409 ) $ (76,183 ) $ (78,409 ) OPEB plans: Balance at beginning of period $ (670 ) $ (981 ) $ (590 ) $ (910 ) Other comprehensive loss - amortization of net gains included in net periodic OPEB cost (71 ) (64 ) (151 ) (135 ) Balance at end of period $ (741 ) $ (1,045 ) $ (741 ) $ (1,045 ) Total accumulated other comprehensive loss: Balance at beginning of period $ (260,845 ) $ (249,564 ) $ (251,690 ) $ (251,189 ) Other comprehensive income (loss) 5,324 1,482 (3,831 ) 3,107 Balance at end of period $ (255,521 ) $ (248,082 ) $ (255,521 ) $ (248,082 ) |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Commitments And Contingencies Disclosure [Abstract] | |
Changes in Accrued Environmental Remediation and Related Costs | Changes in the accrued environmental remediation and related costs during the first six months of 2021 are as follows: Amount (In thousands) Balance at the beginning of the period $ 93,416 Additions charged to expense, net 211 Payments, net (716 ) Balance at the end of the period $ 92,911 Amounts recognized in the Condensed Consolidated Balance Sheet at the end of the period: Current liability $ 2,257 Noncurrent liability 90,654 Balance at the end of the period $ 92,911 |
Financial Instruments and Fai_2
Financial Instruments and Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Fair Value Disclosures [Abstract] | |
Summary of Financial Instruments Not Carried at Fair Value | The following table presents the financial instruments that are not carried at fair value but which require fair value disclosure: December 31, 2020 June 30, 2021 Carrying Fair Carrying Fair amount value amount value (In thousands) Cash, cash equivalents and restricted cash $ 165,272 $ 165,272 $ 173,509 $ 173,509 |
Organization and Basis of Pre_3
Organization and Basis of Presentation - Additional Information (Detail) | Jun. 30, 2021 |
Kronos | |
Organization And Basis Of Presentation [Line Items] | |
Parent company ownership interest | 30.00% |
Parent Company | Valhi Inc | |
Organization And Basis Of Presentation [Line Items] | |
Parent company ownership interest | 83.00% |
Parent Company | Valhi Inc | Contran Corporation | |
Organization And Basis Of Presentation [Line Items] | |
Parent company ownership interest | 92.00% |
Accounts and Other Receivable_3
Accounts and Other Receivables, Net - Schedule of Accounts Notes Loans and Financing Receivable (Detail) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Receivables [Abstract] | ||
Other receivables | $ 15 | $ 393 |
Accrued insurance recoveries | 15 | 18 |
Total | 16,672 | 11,142 |
CompX | ||
Receivables [Abstract] | ||
Trade receivables | 16,712 | 10,801 |
Allowance for doubtful accounts | $ (70) | $ (70) |
Inventories, Net - Schedule of
Inventories, Net - Schedule of Inventories, Net (Detail) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 4,410 | $ 3,220 |
Work in process | 12,404 | 11,668 |
Finished products | 3,134 | 3,449 |
Total | $ 19,948 | $ 18,337 |
Marketable Securities - Schedul
Marketable Securities - Schedule of Marketable Securities (Detail) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Schedule Of Available For Sale Securities [Line Items] | ||
Market value | $ 29,141 | $ 18,206 |
Level 1 | Valhi Inc | Common stock | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Market value | 29,141 | 18,206 |
Cost basis | 24,347 | 24,347 |
Unrealized gain (loss) | $ 4,794 | $ (6,141) |
Marketable Securities - Additio
Marketable Securities - Additional Information (Detail) - Valhi Inc - Common stock - $ / shares shares in Millions | Jun. 30, 2021 | Dec. 31, 2020 |
Schedule Of Available For Sale Securities [Line Items] | ||
Number of shares owned | 1.2 | 1.2 |
Quoted marked price per share | $ 24.33 | $ 15.20 |
Investment in Kronos Worldwid_3
Investment in Kronos Worldwide, Inc. - Additional Information (Detail) - Kronos - USD ($) $ / shares in Units, shares in Millions, $ in Millions | Jun. 30, 2021 | Dec. 31, 2020 |
Schedule Of Equity Method Investments [Line Items] | ||
Number of shares owned | 35.2 | 35.2 |
Aggregate market value | $ 504.3 | $ 525.1 |
Quoted market price per share | $ 14.32 | $ 14.91 |
Investment in Kronos Worldwid_4
Investment in Kronos Worldwide, Inc. - Changes in Carrying Value of Investment (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Balance at the beginning of the period | $ 242,374 | |||
Equity in earnings of Kronos Worldwide, Inc. | $ 7,816 | $ 5,651 | 13,784 | $ 13,858 |
Dividends received from Kronos | (12,678) | $ (12,678) | ||
Equity in Kronos' other comprehensive income: | ||||
Balance at the end of the period | 246,853 | 246,853 | ||
Kronos | ||||
Balance at the beginning of the period | 242,400 | |||
Equity in earnings of Kronos Worldwide, Inc. | 13,800 | |||
Dividends received from Kronos | (12,700) | |||
Equity in Kronos' other comprehensive income: | ||||
Currency translation | 1,300 | |||
Balance at the end of the period | $ 246,900 | 246,900 | ||
Kronos | Defined Benefit Pension Plans | ||||
Equity in Kronos' other comprehensive income: | ||||
Defined benefit pension plans | $ 2,100 |
Investment in Kronos Worldwid_5
Investment in Kronos Worldwide, Inc. - Selected Financial Information of Kronos Balance Sheet (Detail) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Schedule Of Equity Method Investments [Line Items] | ||
Current assets | $ 186,625 | $ 171,164 |
Property and equipment, net | 28,709 | 28,950 |
Other noncurrent assets | 5,361 | 5,262 |
Total assets | 575,347 | 548,150 |
Current liabilities | 27,538 | 27,507 |
Accrued pension costs | 5,525 | 6,392 |
Other | 3,637 | 3,780 |
Stockholders' equity | 336,301 | 311,877 |
Total liabilities and equity | 575,347 | 548,150 |
Kronos | ||
Schedule Of Equity Method Investments [Line Items] | ||
Current assets | 1,159,100 | 1,218,300 |
Property and equipment, net | 509,500 | 524,600 |
Investment in TiO2 joint venture | 103,500 | 103,300 |
Other noncurrent assets | 184,800 | 190,500 |
Total assets | 1,956,900 | 2,036,700 |
Current liabilities | 201,800 | 260,200 |
Long-term debt | 472,500 | 486,700 |
Accrued pension costs | 359,000 | 372,600 |
Other | 112,400 | 120,700 |
Stockholders' equity | 811,200 | 796,500 |
Total liabilities and equity | $ 1,956,900 | $ 2,036,700 |
Investment in Kronos Worldwid_6
Investment in Kronos Worldwide, Inc. - Selected Financial Information of Kronos Income Statement (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Schedule Of Equity Method Investments [Line Items] | ||||
Net sales | $ 36,253 | $ 23,800 | $ 72,177 | $ 56,111 |
Cost of sales | 24,947 | 16,434 | 49,836 | 38,314 |
Income from operations | 2,887 | 14 | 6,859 | 2,548 |
Income tax expense (benefit) | 1,901 | (1,516) | 4,406 | (4,779) |
Net income | 12,697 | 4,589 | 25,954 | 6,499 |
Kronos | ||||
Schedule Of Equity Method Investments [Line Items] | ||||
Net sales | 478,600 | 386,000 | 943,600 | 807,000 |
Cost of sales | 369,600 | 290,200 | 738,900 | 623,100 |
Income from operations | 43,800 | 33,000 | 77,800 | 76,500 |
Income tax expense (benefit) | 9,200 | 5,100 | 15,200 | 13,500 |
Net income | $ 25,700 | $ 18,600 | $ 45,300 | $ 45,600 |
Other Assets, Net - Schedule of
Other Assets, Net - Schedule of Other Assets, Net (Detail) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Deferred Costs Capitalized Prepaid And Other Assets Disclosure [Abstract] | ||
Pension asset | $ 3,976 | $ 3,881 |
Other | 1,385 | 1,381 |
Total | $ 5,361 | $ 5,262 |
Accrued and Other Current Lia_3
Accrued and Other Current Liabilities - Schedule of Accrued and Other Current Liabilities (Detail) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Payables And Accruals [Abstract] | ||
Employee benefits | $ 7,385 | $ 9,000 |
Other | 1,460 | 1,253 |
Total | $ 8,845 | $ 10,253 |
Long-Term Debt - Additional Inf
Long-Term Debt - Additional Information (Detail) - NLKW Holding, LLC - Valhi - Valhi Credit Facility | 6 Months Ended |
Jun. 30, 2021USD ($) | |
Debt Instrument [Line Items] | |
Maximum borrowing under credit facility | $ 50,000,000 |
Borrowings or repayments under revolving credit facility | 0 |
Outstanding borrowing | 500,000 |
Amount available for future borrowing under revolving credit facility | $ 49,500,000 |
Debt instrument, description of variable rate basis | prime rate |
Variable rate basis spread above reference rate | 1.875% |
Debt instrument average interest rate | 5.13% |
Debt instrument interest rate | 5.13% |
Other Noncurrent Liabilities -
Other Noncurrent Liabilities - Summary of Other Noncurrent Liabilities (Detail) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Other Liabilities Disclosure [Abstract] | ||
Reserve for uncertain tax positions | $ 1,717 | $ 1,717 |
OPEB | 878 | 985 |
Insurance claims and expenses | 617 | 653 |
Other | 425 | 425 |
Total | $ 3,637 | $ 3,780 |
Revenue Recognition - Schedule
Revenue Recognition - Schedule of Disaggregates Net Sales By Reporting Unit (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Disaggregation Of Revenue [Line Items] | ||||
Total net sales | $ 36,253 | $ 23,800 | $ 72,177 | $ 56,111 |
Security Products | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total net sales | 27,587 | 18,573 | 53,472 | 44,042 |
Marine Components | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total net sales | $ 8,666 | $ 5,227 | $ 18,705 | $ 12,069 |
Employee Benefit Plans - Compon
Employee Benefit Plans - Components of Net Periodic Defined Benefit Cost (Income) (Detail) - Defined Benefit Pension Plans - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Defined Benefit Plan Disclosure [Line Items] | ||||
Interest cost | $ 279 | $ 355 | $ 432 | $ 710 |
Expected return on plan assets | (398) | (461) | (796) | (922) |
Recognized actuarial losses | 376 | 380 | 752 | 760 |
Total | $ 257 | $ 274 | $ 388 | $ 548 |
Employee Benefit Plans - Additi
Employee Benefit Plans - Additional Information (Detail) $ in Millions | Jun. 30, 2021USD ($) |
Defined Benefit Pension Plans | |
Defined Benefit Plan Disclosure [Line Items] | |
Expected contribution during 2021 | $ 1.2 |
Income Taxes - Component of Inc
Income Taxes - Component of Income Taxes (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Income Tax Disclosure [Abstract] | ||||
Expected tax expense, at U.S. federal statutory income tax rate of 21% | $ 3,200 | $ 700 | $ 6,600 | $ 500 |
Rate differences on equity in earnings of Kronos, net of dividends | (1,200) | (2,200) | (2,200) | (5,400) |
U.S. state income taxes and other, net | (100) | 100 | ||
Income tax expense (benefit) | $ 1,901 | $ (1,516) | $ 4,406 | $ (4,779) |
Income Taxes - Components of Co
Income Taxes - Components of Comprehensive Provision for Income Taxes Allocation (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Comprehensive provision (benefit) for income taxes allocable to: | ||||
Net income (loss) | $ 1,901 | $ (1,516) | $ 4,406 | $ (4,779) |
Additional paid-in capital | (100) | |||
Other comprehensive income (loss): | ||||
Currency translation | 200 | 1,200 | 300 | (1,500) |
Total | 2,400 | 5,300 | (5,800) | |
Defined Benefit Pension Plans | ||||
Other comprehensive income (loss): | ||||
Defined benefit plans | $ 300 | $ 300 | $ 600 | $ 600 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Mar. 31, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income Tax Disclosure [Line Items] | |||||
Dividends received from Kronos Worldwide, Inc. | $ 12,678 | $ 12,678 | |||
Kronos | |||||
Income Tax Disclosure [Line Items] | |||||
Dividends received from Kronos Worldwide, Inc. | $ 12,700 | $ 12,700 | |||
Kronos | CARES Act | |||||
Income Tax Disclosure [Line Items] | |||||
Cash tax benefit due to reversal of valuation allowance | $ 500 | ||||
Percentage of adjusted taxable income | 50.00% | 30.00% |
Stockholders Equity - Schedule
Stockholders Equity - Schedule of Changes in Accumulated Other Comprehensive Loss (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Accumulated Other Comprehensive Income Loss [Line Items] | ||||
Balance at beginning of period | $ 311,877 | |||
Balance at end of period | $ 336,301 | 336,301 | ||
Currency Translation | ||||
Accumulated Other Comprehensive Income Loss [Line Items] | ||||
Balance at beginning of period | (169,030) | $ (182,961) | (169,575) | $ (172,843) |
Other comprehensive income (loss) | 402 | 4,364 | 947 | (5,754) |
Balance at end of period | (168,628) | (178,597) | (168,628) | (178,597) |
Accumulated Defined Benefit Plans Adjustment | Defined Benefit Pension Plans | ||||
Accumulated Other Comprehensive Income Loss [Line Items] | ||||
Balance at beginning of period | (79,553) | (77,214) | (80,704) | (78,257) |
Other comprehensive income (loss) | 1,144 | 1,031 | 2,295 | 2,074 |
Balance at end of period | (78,409) | (76,183) | (78,409) | (76,183) |
Accumulated Defined Benefit Plans Adjustment | OPEB | ||||
Accumulated Other Comprehensive Income Loss [Line Items] | ||||
Balance at beginning of period | (981) | (670) | (910) | (590) |
Other comprehensive income (loss) | (64) | (71) | (135) | (151) |
Balance at end of period | (1,045) | (741) | (1,045) | (741) |
Accumulated other comprehensive income (loss) | ||||
Accumulated Other Comprehensive Income Loss [Line Items] | ||||
Balance at beginning of period | (249,564) | (260,845) | (251,189) | (251,690) |
Other comprehensive income (loss) | 1,482 | 5,324 | 3,107 | (3,831) |
Balance at end of period | $ (248,082) | $ (255,521) | $ (248,082) | $ (255,521) |
Stockholder's Equity - Addition
Stockholder's Equity - Additional Information (Detail) - CompX $ in Thousands | 6 Months Ended |
Jun. 30, 2021USD ($)shares | |
Class Of Stock [Line Items] | |
Number of shares available for purchase under repurchase authorizations | 627,547 |
Common Class A [Member] | |
Class Of Stock [Line Items] | |
Number of shares purchased in market transaction | 50,000 |
Value of of shares purchased in market transaction | $ | $ 755,000 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) $ in Thousands | 6 Months Ended | |
Jun. 30, 2021USD ($)Casessite | Dec. 31, 2020USD ($) | |
Commitments and Contingent Liabilities [Line Items] | ||
Accrual for reasonably estimable environmental remediation and related matters | $ 92,911 | $ 93,416 |
Environmental Remediation Sites NL Named As PRP Or Defendant | ||
Commitments and Contingent Liabilities [Line Items] | ||
Accrual for reasonably estimable environmental remediation and related matters | $ 93,000 | |
Number of sites associated with remediation and related costs | site | 32 | |
Number of sites currently not able to reasonably estimate a range of costs | site | 5 | |
Maximum | Environmental Remediation Sites NL Named As PRP Or Defendant | ||
Commitments and Contingent Liabilities [Line Items] | ||
Upper end range, estimate costs for remediation and related matters | $ 113,000 | |
Lead Pigment Litigation | ||
Commitments and Contingent Liabilities [Line Items] | ||
Number of cases settled and dismissed and found not liable | Cases | 100 | |
Period by which loss contingency claims settled and dismissed | 30 years | |
Remaining litigation settlement payment due in first year | $ 12,000 | |
Remaining litigation settlement payment due in second year | 12,000 | |
Remaining litigation settlement payment due in third year | 12,000 | |
Remaining litigation settlement payment due in fourth year | 12,000 | |
Remaining litigation settlement payment due in fifth year | 12,000 | |
Remaining litigation settlement payment due in sixth year | $ 16,700 |
Commitments and Contingencies_2
Commitments and Contingencies - Changes in Accrued Environmental Remediation and Related Costs (Detail) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2021 | Dec. 31, 2020 | |
Commitments And Contingencies Disclosure [Abstract] | ||
Balance at the beginning of the period | $ 93,416 | |
Additions charged to expense, net | 211 | |
Payments, net | (716) | |
Balance at the end of the period | 92,911 | |
Amounts recognized in the Condensed Consolidated Balance Sheet at the end of the period: | ||
Current liability | 2,257 | $ 2,027 |
Noncurrent liability | $ 90,654 | $ 91,389 |
Financial Instruments and Fai_3
Financial Instruments and Fair Value Measurements - Summary of Financial Instruments Not Carried at Fair Value (Detail) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Carrying Amount | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Cash, cash equivalents and restricted cash, Carrying amount | $ 173,509 | $ 165,272 |
Fair Value | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Cash, cash equivalents and restricted cash, Fair value | $ 173,509 | $ 165,272 |